NRB unveils Mid-Term Review of Monetary Policy
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KATHMANDU, FEBRUARY 13: Nepal Rastra Bank has made public the details of the mid-term review of the monetary policy of the current financial year. Based on the review, the central bank made new arrangements to implement the interest rate of fixed deposits and the interest rate ‘corridor’.
“To make the interest rate corridor effective, the fixed deposit facility will be implemented from mid-February,” states the mid-term review of the monetary policy, adding, “The interest rate of institutional fixed deposits will be arranged in such a way that it can be fixed by making it one percentage point lower than the interest rate provided for individual fixed deposits.”
Likewise, loans up to Rs 20 million provided to agricultural, small, cottage and medium-scale enterprises will be allowed to be counted in the ‘Regulatory Retail Portfolio’.
Given the internal and external situations and scenarios of the economy and the policy arrangements made during the first quarterly review, the rates under the interest rate corridor have been kept unchanged. Provisions related to mandatory cash reserve and statutory liquidity ratios have been given continuity. — RSS
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